massive ongoing changes in how the internet is constructed from structure:europe 2013

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Tuesday, October 1, 13

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Presentation from Craig Labovitz , DeepField #structureeurope More at http://event.gigaom.com/structureeurope/

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Page 1: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Tuesday, October 1, 13

Page 2: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

MASSIVE, ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED

SPEAKER: Craig LabovitzCo-FounderDeepField

Tuesday, October 1, 13

Page 3: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Dr. Craig [email protected]

Massive, Ongoing Changes in Howthe Internet is Constructed

Structure Europe 2013

Tuesday, October 1, 13

Page 4: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

This Talk

This talk about how changing Internet economics and the fierce battles between content, infrastructure and consumer companies is altering how almost all global

Internet traffic is generated and delivered.

Tuesday, October 1, 13

Page 5: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Multi Year Study of Internet Infrastructure

• Data from backbone routers around the Internet• One of the largest ongoing studies of it kind• Studying both the evolving core infrastructure and economics of the

new Internet

Tuesday, October 1, 13

Page 6: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Internet Core 2008

• Almost all Internet traffic goes through ten companies

• Most investment is in long haul backbones• Large backbone providers incur most of the cost, provide most

of the value, and deliver the majority of Internet traffic

Internet Core Transit

Last Provider

Enterprise / Consumer

FREE

Tuesday, October 1, 13

Page 7: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Explosion of Content

• Massive consolidation of videos, music and web pages • Majority of traffic goes comes from 150 companies• Growing share of revenue goes to smaller share of companies

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Top$200$Companies$as$Percentage$of$all$Internet$Traffic$

Tuesday, October 1, 13

Page 8: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Internet Core 2010

• Almost all content shifts to datacenters• Massive investment and revenue in datacenters• New Internet Core

Enterprise / Consumer

Data CentersContent

Transit

Last Provider

FREE

Tuesday, October 1, 13

Page 9: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

HyperGiants 2013

• 50 companies deliver more than half of all Internet traffic• Using an even smaller number of datacenters and CDN

Tuesday, October 1, 13

Page 10: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Last Mile 2013

• Content Distribution (CDN) now delivers more than 50% of all traffic

• Most investment in datacenter and last mile content distribution, including CDN and edge caches

Tuesday, October 1, 13

Page 11: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Internet Core 2013

• New datacenters support new content• Driving growth of traffic and costs to last mile• Rapid growth in Content Distribution Networks

Last Mile

Enterprise / Consumer

Data CentersContent

Enterprise / Consumer

OpenConnect CDN

TransitFREE

Tuesday, October 1, 13

Page 12: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Netflix 2013

Tuesday, October 1, 13

Page 13: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

The Last Mile

• Datacenters in major (“NFL”) cities is no longer sufficient• New battle is for control of rack space in secondary cities and

last mile edge servers and caches• Growing cost but fixed revenue in last mile

Tuesday, October 1, 13

Page 14: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

www.deepfield.com

Tuesday, October 1, 13

Page 15: MASSIVE ONGOING CHANGES IN HOW THE INTERNET IS CONSTRUCTED from Structure:Europe 2013

Tuesday, October 1, 13